Acadia Healthcare settles New Mexico civil litigation for $400M, no admission of liability

Acadia Healthcare Company, Inc.

$400M aggregate settlement to resolve three New Mexico state court cases; no admission of liability.
Payment from insurance, cash ($112.2M at June 30) and $505M revolver; due 30 days after court approval.
Settlement expense recorded in Q3 2023, excluded from adjusted EBITDA; reaffirms existing guidance.
Company affirms strong financial position with net leverage ~2.0x and sufficient capital for investments.
Settlements fully release Acadia and Desert Hills from all claims related to the lawsuits.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Acadia Healthcare Company, Inc. entered into Settlement Agreements valued at an aggregate amount of $400 million (effective 2023-10-30).

Action: entry
Agreement: settlement
Value: an aggregate amount of $400 million
Effective: 2023-10-30

Exact text from the filing

On October 30, 2023, Acadia Healthcare Company, Inc. (“Acadia” or “the Company”) and its subsidiary Youth and Family Centered Services of New Mexico (“Desert Hills”) entered into settlement agreements (collectively, the “Settlement Agreements”) in connection with Acadia and Desert Hills’ previously disclosed civil litigation in New Mexico State District Court

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Acadia Healthcare Company, Inc. filing history →

Source: SEC EDGAR

accession 0001193125-23-266248

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